Intro to Business - Principles of Money and Financial Contracts

Which of the following is NOT an example of a financial institution?

• a realtor
• a mortgage company
• an investment banking center
• a credit union

Which of the following is a closed line of credit to spend on consumer goods or intangible goods?

• a loan
• a checking account
• a security
• a credit card

Which of the following financial contracts involves risk?

• investment banking
• savings accounts
• checking accounts
• payroll advances

Which of the following is an open line of credit to spend on consumer goods?

• a credit card
• a loan
• a checking account
• a security

Which of the following financial contracts represents a relationship between an employee and his or her employer?

• a payroll advance
• a checking account
• a loan
• a credit card

Annual Percentage Rate calculates which of the following?

• interest rate
• debt-to-income ratio
• periodic rate
• debtor income

Janet has an introductory APR for the first six months. After that her rate increases to a variable 13.99 percent. Janet purchased the card in January, how would you define her rate in October?

• variable
• fixed
• mixed
• elastic

Creditors make the most money off which of the following types of tiered APR?

• cash advances
• balance transfers
• installments
• purchases

Which of the following finance charge calculation methods is the least advantageous to the debtor?

• double balance
• adjusted balance
• average daily balance
• previous balance

Which of the following finance charge calculation methods is the least advantageous to the creditor?

• adjusted balance
• double balance
• average daily balance
• previous balance